--
Publishing revenue decreased 20.2% to $6.6 million from $8.2 million;
and

--
The Publishing segment had an operating loss of $0.1 million as
compared to operating income of $0.2 million.

Included in the results for the quarter ended September 30, 2017 are:

--
A $0.3 million non-cash compensation charge ($0.2 million, net of tax,
or $0.01 per share) related to the expensing of stock options
primarily consisting of corporate expenses.

Included in the results for the quarter ended September 30, 2016 are:

--
A $1.6 million increase in the deferred tax valuation allowance;

--
A $0.5 million ($0.3 million, net of tax, or $0.01 per share) net gain
on the sale or disposal of assets primarily associated with the $0.7
million gain from a land easement in South Carolina that was partially
offset by various fixed asset disposals;

--
A $0.2 million ($0.1 million net of tax) net decrease in the estimated
fair value of the contingent earn-out consideration associated with
the Eagle, Bryan Perry Newsletters and Daily Devotional acquisitions;
and

Per share numbers are calculated based on 26,144,796 diluted weighted
average shares for the quarter ended September 30, 2017, and 26,183,182
diluted weighted average shares for the quarter ended September 30, 2016.

Year to Date 2017 Results

For the nine months ended September 30, 2017 compared to the nine months
ended September 30, 2016:

Consolidated

--
Total revenue decreased 3.5% to $196.5 million from $203.6 million;

--
Total operating expenses decreased 0.5% to $178.1 million from $179.0
million;

--
Publishing revenue decreased 3.8% to $19.0 million from $19.8 million;
and

--
The Publishing segment had operating income of $0.3 million as
compared to an operating loss of $0.1 million.

Included in the results for the nine months ended September 30, 2017 are:

--
A $0.4 million ($0.2 million, net of tax, or $0.01 per share) net gain
on the sale or disposal of assets including the sale of a former
transmitter site in the Dallas, Texas market and the sale of two
magazines that were partially offset by other fixed asset disposals;

--
A $2.8 million loss ($1.7 million, net of tax, or $0.06 per share) on
the early redemption of long-term debt due to the repayment and
termination of the senior credit facilities consisting of a term loan
("Term Loan B") and Revolver; and

--
A $1.7 million non-cash compensation charge ($1.0 million, net of tax,
or $0.04 per share) related to the expensing of stock options and
restricted stock consisting of:
--
$1.2 million non-cash compensation charge included in corporate
expenses;

Included in the results for the nine months ended September 30, 2016 are:

--
A $1.6 million increase in the deferred tax valuation allowance;

--
A $0.7 million impairment loss ($0.4 million, net of tax, or $0.02 per
share) on land held for sale in Covina, California;

--
A $2.0 million ($1.2 million, net of tax, or $0.05 per diluted share)
net gain on the sale or disposal of assets primarily associated with
the $1.9 million gain on the sale of the Miami tower site and a $0.7
million gain from a land easement in South Carolina that was partially
offset by a $0.4 million charge for the write-off of leasehold
improvements incurred upon the relocation of the offices in Washington
D.C. and various fixed asset disposals;

--
A $0.5 million ($0.3 million, net of tax, or $0.01 per share) reserve
for a litigation matter;

--
A $0.5 million ($0.3 million, net of tax, or $0.01 per share) net
decrease in the estimated fair value of the contingent earn-out
consideration associated with the Eagle entities, Bryan Perry
Newsletters and Daily Devotional acquisitions; and

--
A $0.5 million non-cash compensation charge ($0.3 million, net of tax,
or $0.01 per share) related to the expensing of stock options
consisting of:
--
$0.3 million non-cash compensation included in corporate expenses;

--
$0.1 million non-cash compensation included in broadcast operating
expenses; and

Per share numbers are calculated based on 26,454,923 diluted weighted
average shares for the nine months ended September 30, 2017, and
26,012,930 diluted weighted average shares for the nine months ended
September 30, 2016.

Balance Sheet

As of September 30, 2017, the company had $255.0 million outstanding on
the Notes and $6.6 million outstanding under the ABL Facility.

Acquisitions and Divestitures

The following transactions were completed since July 1, 2017:

--
On September 15, 2017, the company closed on the acquisition of real
property, including the land, tower and broadcasting facilities, of
radio station WSPZ-AM in Bethesda, Maryland for $1.5 million in cash.
On September 15, 2017, the company entered an Asset Purchase Agreement
to acquire radio station WSPZ-AM in Bethesda, Maryland for $0.6
million in cash from a related party. The company began programming
the station under a Local Marketing Agreement within its Washington DC
broadcast market on the same date.

--
On August 31, 2017, the company acquired the TeacherTube.com website
and related assets for $1.1 million in cash.

--
On August 31, 2017, the company acquired the Intelligence Report
newsletter and related assets valued at $2.5 million and it assumed
deferred subscription liabilities of $2.9 million. The company paid no
cash to the seller upon closing.

--
On July 24, 2017, the company closed on the acquisition of an FM
translator construction permit in Eaglemount, Washington, for $40,000
in cash. The FM translator will be relocated to the Portland, Oregon
market for use by its KDZR-AM radio station.

--
On July 6, 2017, the company acquired the TradersCrux.com website and
related assets for $0.3 million in cash. In addition, the company may
pay the seller a one-time contingent payment of up to $0.1 million if
certain income goals are met during the one-year following the closing.

Conference Call Information

Salem will host a teleconference to discuss its results on November 7,
2017 at 2:00 P.M. Pacific Time. To access the teleconference, please
dial (877) 524-8416, and then ask to be joined into the Salem Media
Group Third Quarter 2017 call or listen via the investor relations
portion of the companys website, located at investor.salemmedia.com.
A replay of the teleconference will be available through November 21,
2017 and can be heard by dialing (877) 660-6853, passcode 13671350 or on
the investor relations portion of the companys website, located at
investor.salemmedia.com.

Fourth Quarter 2017 Outlook

For the fourth quarter of 2017, the company is projecting total revenue
to decline between 4% to 6% from fourth quarter 2016 total revenue of
$70.7 million. Excluding the impact of political revenue and the revenue
of the eliminated loss-making magazines, the company would be projecting
revenue decline between 1% and 3%. The company is also projecting
operating expenses before gains or losses on the sale or disposal of
assets, stock-based compensation expense, changes in the estimated fair
value of contingent earn-out consideration, impairments, depreciation
expense and amortization expense to be between flat and a decline of 3%
compared to the fourth quarter of 2016 non-GAAP operating expenses of
$55.5 million.

A reconciliation of non-GAAP operating expenses, excluding gains or
losses on the sale or disposal of assets, stock-based compensation
expense, changes in the estimated fair value of contingent earn-out
consideration, impairments, depreciation expense and amortization
expense to the most directly comparable GAAP measure is not available
without unreasonable efforts on a forward-looking basis due to the
potential high variability, complexity and low visibility with respect
to the charges excluded from this non-GAAP financial measure, in
particular, the change in the estimated fair value of earn-out
consideration, impairments and gains or losses from the sale or disposal
of fixed assets. The company expects the variability of the above
charges may have a significant, and potentially unpredictable, impact on
its future GAAP financial results.

About Salem Media Group, Inc.

Salem Media Group is Americas leading multimedia company specializing
in Christian and conservative content, with media properties comprising
radio, digital media and book and newsletter publishing. Each day Salem
serves a loyal and dedicated audience of listeners and readers numbering
in the millions nationally. With its unique programming focus, Salem
provides compelling content, fresh commentary and relevant information
from some of the most respected figures across the Christian and
conservative media landscape.

The company is the largest commercial U.S. radio broadcasting company
providing Christian and conservative programming. Salem owns and/or
operates 119 radio stations, with 74 stations in the top 25 media
markets. Salem Radio Network ("SRN") is a full-service national radio
network, with nationally syndicated programs comprising Christian
teaching and talk, conservative talk, news, and music. SRN is home to
many industry-leading hosts including: Hugh Hewitt, Mike Gallagher,
Dennis Prager, Michael Medved, Larry Elder, Joe Walsh and Eric Metaxas.

Salems Regnery Publishing unit, with a history dating back to 1948, is
the nations leading independent publisher of conservative books. Having
published many of the seminal works of the early conservative movement,
Regnery today continues as a major publisher in the conservative space,
with leading authors including: Ann Coulter, Dinesh DSouza, Newt
Gingrich, David Limbaugh, Ed Klein and Mark Steyn. Salems book
publishing business also includes Xulon Press(TM), a leading provider of
self-publishing services for Christian authors and Mill City Press, a
general market self-publisher.

Eagle Wellness, through its website newportnaturalhealth.com, provides
insightful health advice and is a trusted source of high quality
nutritional supplements from leading health expert, Leigh Erin Connealy
MD. Dr. Connealy is the medical director of one of the largest medical
practices in the country where she practices integrative medicine.

Forward-Looking Statements

Statements used in this press release that relate to future plans,
events, financial results, prospects or performance are forward-looking
statements as defined under the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those anticipated as
a result of certain risks and uncertainties, including but not limited
to the ability of Salem to close and integrate announced transactions,
market acceptance of Salems radio station formats, competition from new
technologies, adverse economic conditions, and other risks and
uncertainties detailed from time to time in Salems reports on Forms
10-K, 10-Q, 8-K and other filings filed with or furnished to the
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date hereof. Salem undertakes no obligation to update or revise
any forward-looking statements to reflect new information, changed
circumstances or unanticipated events.

(1) Regulation G

Management uses certain non-GAAP financial measures defined below in
communications with investors, analysts, rating agencies, banks and
others to assist such parties in understanding the impact of various
items on its financial statements. The company uses these
non-GAAP financial measures to evaluate financial results, develop
budgets, manage expenditures and as a measure of performance under
compensation programs.

The companys presentation of these non-GAAP financial measures
should not be considered as a substitute for or superior to the most
directly comparable financial measures as reported in accordance with
GAAP.

Regulation G defines and prescribes the conditions under which
certain non-GAAP financial information may be presented in this earnings
release. The company closely monitors EBITDA, Adjusted EBITDA,
Station Operating Income ("SOI"), Same Station net broadcast revenue,
Same Station broadcast operating expenses, Same Station Operating
Income, Digital Media Operating Income, Publishing Operating Income
(Loss), and operating expenses excluding gains or losses on the sale or
disposal of assets, stock-based compensation, changes in the estimated
fair value of contingent earn-out consideration, impairments,
depreciation and amortization, all of which are non-GAAP financial
measures. The company believes that these non-GAAP financial
measures provide useful information about its core operating results,
and thus, are appropriate to enhance the overall understanding of its
financial performance. These non-GAAP financial measures are
intended to provide management and investors a more complete
understanding of its underlying operational results, trends and
performance.

The company defines Station Operating Income ("SOI") as net broadcast
revenue minus broadcast operating expenses. The company defines Digital
Media Operating Income as net Digital Media Revenue minus Digital Media
Operating Expenses. The company defines Publishing Operating
Income (Loss) as net Publishing Revenue minus Publishing Operating
Expenses. The company defines EBITDA as net income before
interest, taxes, depreciation, and amortization. The company
defines Adjusted EBITDA as EBITDA before gains or losses on the sale or
disposal of assets, before changes in the estimated fair value of
contingent earn-out consideration, before changes in the fair value of
interest rate swap, before impairments, before net miscellaneous income
and expenses, before gain on bargain purchase, before (gain) loss on
early retirement of long-term debt and before non-cash compensation
expense. SOI, Digital Media Operating Income, Publishing
Operating Income (Loss), EBITDA and Adjusted EBITDA are commonly used by
the broadcast and media industry as important measures of performance
and are used by investors and analysts who report on the industry to
provide meaningful comparisons between broadcasters. SOI, Digital
Media Operating Income, Publishing Operating Income (Loss), EBITDA and
Adjusted EBITDA are not measures of liquidity or of performance in
accordance with GAAP and should be viewed as a supplement to and not a
substitute for or superior to its results of operations and financial
condition presented in accordance with GAAP. The companys
definitions of SOI, Digital Media Operating Income, Publishing Operating
Income (Loss), EBITDA and Adjusted EBITDA are not necessarily comparable
to similarly titled measures reported by other companies.

The company defines Adjusted Free Cash Flow as Adjusted EBITDA less
cash paid for capital expenditures, less cash paid for income taxes, and
less cash paid for interest. The company considers Adjusted Free
Cash Flow to be a liquidity measure that provides useful information to
management and investors about the amount of cash generated by its
operations after cash paid for capital expenditures, cash paid for
income taxes and cash paid for interest. A limitation of Adjusted
Free Cash Flow as a measure of liquidity is that it does not represent
the total increase or decrease in its cash balance for the period. The
company uses Adjusted Free Cash Flow, a non-GAAP liquidity measure, both
in presenting its results to stockholders and the investment community,
and in its internal evaluation and management of the business. The
companys presentation of Adjusted Free Cash Flow is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. The companys definition
of Adjusted Free Cash Flow is not necessarily comparable to similarly
titled measures reported by other companies.

The company defines Same Station net broadcast revenue as broadcast
revenue from its radio stations and networks that the company owns or
operates in the same format on the first and last day of each quarter,
as well as the corresponding quarter of the prior year. The
company defines Same Station broadcast operating expenses as broadcast
operating expenses from its radio stations and networks that the company
owns or operates in the same format on the first and last day of each
quarter, as well as the corresponding quarter of the prior year. The
company defines Same Station SOI as Same Station net broadcast revenue
less Same Station broadcast operating expenses. Same Station
operating results include those stations that the company owns or
operates in the same format on the first and last day of each quarter,
as well as the corresponding quarter of the prior year. Same
Station operating results for a full calendar year are calculated as the
sum of the Same Station-results for each of the four quarters of that
year. The company uses Same Station operating results, a non-GAAP
financial measure, both in presenting its results to stockholders and
the investment community, and in its internal evaluations and management
of the business. The company believes that Same Station operating
results provide a meaningful comparison of period over period
performance of its core broadcast operations as this measure excludes
the impact of new stations, the impact of stations the company no longer
owns or operates, and the impact of stations operating under a new
programming format. The companys presentation of Same Station
operating results are not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. The companys definition of Same Station
operating results is not necessarily comparable to similarly titled
measures reported by other companies.

For all non-GAAP financial measures, investors should consider the
limitations associated with these metrics, including the potential lack
of comparability of these measures from one company to another.

The Supplemental Information tables that follow the condensed
consolidated financial statements provide reconciliations of the
non-GAAP financial measures that the company uses in this earnings
release to the most directly comparable measures calculated in
accordance with GAAP. The company uses non-GAAP financial
measures to evaluate financial performance, develop budgets, manage
expenditures, and determine employee compensation. The companys
presentation of this additional information is not to be considered as a
substitute for or superior to the directly comparable measures as
reported in accordance with GAAP.

The company defines EBITDA (1) as net income before interest, taxes,
depreciation, and amortization. The table below presents a
reconciliation of EBITDA (1) to Net Income (Loss), the most directly
comparable GAAP measure. EBITDA (1) is a non-GAAP financial performance
measure that is not to be considered a substitute for or superior to the
directly comparable measures reported in accordance with GAAP.

The company defines Adjusted EBITDA (1) as EBITDA (1) before gains or
losses on the sale or disposal of assets, before changes in the
estimated fair value of contingent earn-out consideration, before
changes in the fair value of interest rate swap, before impairments,
before net miscellaneous income and expenses, before (gain) loss on
early retirement of long-term debt and before non-cash compensation
expense. The table below presents a reconciliation of Adjusted EBITDA
(1) to Net Income (Loss), the most directly comparable GAAP measure.
Adjusted EBITDA (1) is a non-GAAP financial performance measure that is
not to be considered a substitute for or superior to the directly
comparable measures reported in accordance with GAAP.

The company defines Adjusted Free Cash Flow (1) as Adjusted EBITDA (1)
less cash paid for capital expenditures, less cash paid for income
taxes, and less cash paid for interest. The company considers Adjusted
Free Cash Flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by its operations after cash paid for capital expenditures,
cash paid for income taxes and cash paid for interest. A limitation of
Adjusted Free Cash Flow as a measure of liquidity is that it does not
represent the total increase or decrease in its cash balance for the
period. The company uses Adjusted Free Cash Flow, a non-GAAP liquidity
measure, both in presenting its results to stockholders and the
investment community, and in its internal evaluation and management of
the business. The companys presentation of Adjusted Free Cash Flow is
not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with GAAP.
The companys definition of Adjusted Free Cash Flow is not necessarily
comparable to similarly titled measures reported by other companies.

The table below presents a reconciliation of Adjusted Free Cash Flow to
net cash provided by operating activities, the most directly comparable
GAAP measure. Adjusted Free Cash Flow is a non-GAAP liquidity measure
that is not to be considered a substitute for or superior to the
directly comparable measures reported in accordance with GAAP.

(1) $255.0 million notes with semi-annual interest payments at an
annual rate of 6.75 %
(2) Outstanding borrowings under the ABL Facility, with interest
payments due at LIBOR plus 1.5% to 2.0% per annum or prime rate
plus 0.5% to 1.0% per annum.